In a significant development aimed at streamlining Nigeria's tax administration, the Federal Inland Revenue Service (FIRS) has announced that the National Identification Number (NIN) issued by the National Identity Management Commission (NIMC) now automatically functions as the Tax Identification Number (Tax ID or TIN) for individual Nigerians.
This clarification, shared through a public awareness campaign on X (formerly Twitter) on December 22, 2025, addresses growing public concerns over provisions in the upcoming tax laws requiring a Tax ID for certain transactions, including bank account operations.
According to the FIRS, for registered businesses, the Registration Certificate (RC) number issued by the Corporate Affairs Commission (CAC) will similarly serve as their Tax ID.
No separate physical card or new registration is required, as the Tax ID is a unique digital identifier linked directly to existing national records.
The announcement comes ahead of the implementation of the Nigeria Tax Administration Act (NTAA), one of four tax reform bills signed into law by President Bola Tinubu in June 2025, set to take full effect on January 1, 2026.
The NTAA mandates the use of a Tax ID for specific financial and economic activities, but the FIRS emphasized that this is not an entirely new requirement. It builds on provisions introduced in the Finance Act 2019, which already required Tax IDs for certain banking and business transactions, particularly for taxable entities.
“The Tax ID unifies all TINs previously issued by FIRS and state Internal Revenue Services into a single identifier,” the FIRS stated in its campaign. “For individuals, your NIN automatically serves as your Tax ID, while for registered companies, your CAC RC number is used. You do not need a physical card; the Tax ID is a unique number linked directly to your identity.”
This unification aims to simplify taxpayer identification, eliminate redundancies across government databases, reduce opportunities for tax evasion, and ensure greater fairness in the tax system by capturing all individuals and entities with taxable income.
As of October 2025, NIMC data indicates that approximately 123.9 million Nigerians have been issued an NIN, significantly expanding the potential tax net without requiring additional registrations for most citizens.
The policy has sparked discussions, particularly around its implications for banking. Commercial banks have begun notifying customers to link accounts to NINs or existing TINs in preparation for 2026 compliance.
However, Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, has repeatedly clarified that the requirement applies only to taxable persons—those earning income through trade, business, or other economic activities—and not to non-income earners such as students, dependents, or low-income individuals without taxable earnings.
Banks are required to request Tax IDs from taxable customers when opening or maintaining accounts, but ordinary personal accounts for non-taxable individuals remain unaffected.
The FIRS urged Nigerians to disregard misinformation circulating about the reforms, assuring that the changes are designed to enhance efficiency, transparency, and equity in tax administration rather than impose undue burdens.
Experts view this integration of NIN and CAC numbers as a progressive step toward digital governance in Nigeria. By leveraging existing identity systems, the government avoids the logistical challenges of issuing new identifiers to over 200 million people.
It also aligns with broader efforts to formalize the economy, improve revenue collection, and fund public services amid fiscal pressures.
Similar models have been adopted in other countries, where national ID numbers double as tax identifiers to boost compliance rates.
For non-residents or foreign entities conducting business in Nigeria, separate registration for a Tax ID may still be required, excluding those with only passive income like dividends or royalties.
Government agencies at all levels are also mandated to comply with Tax ID registration under the NTAA.
As January 2026 approaches, the FIRS has intensified public sensitization efforts, including videos and social media posts, to educate citizens.
The agency stressed that individuals with existing TINs do not need to re-register, as the system will automatically harmonize records.
This reform is part of a comprehensive overhaul of Nigeria's tax laws, including the Nigeria Tax Act, Nigeria Revenue Service (Establishment) Act, and Joint Revenue Board (Establishment) Act, all aimed at modernizing revenue generation and making the system more investor-friendly.
Critics have raised concerns about potential exclusion of informal sector workers, but proponents argue that the automatic linkage to NIN minimizes barriers while gradually bringing more economic actors into the formal tax framework.
With over 123 million NINs already in circulation, the majority of adult Nigerians are now effectively pre-registered for tax purposes, provided they engage in taxable activities.
The FIRS's announcement has been widely reported across major Nigerian media outlets, providing reassurance that no mass rush for new IDs is necessary.
As the country prepares for these changes, stakeholders including banks, businesses, and citizens are encouraged to verify information through official channels to avoid falling prey to scams or false rumors.
This development marks a pivotal shift toward a more integrated and efficient tax ecosystem in Nigeria, potentially setting a precedent for other African nations grappling with similar challenges in revenue mobilization.
